It's Never Too Late: Entrepreneurship in the Aging Economy

Abstract

With an aging population, this study focuses on exploring old-age effect on entrepreneurship propensity, sources of seniors' entrepreneurship, and the economic, fiscal, and labor impacts of elderly entrepreneurship. After reviewing current theories and literature, four hypotheses are tested through two binomial logit models, an extended log-linear growth model with spatial and sensitivity analysis, and a path analysis model. This dissertation builds on the utility maximization theory, economic growth theories, and social theories of aging. The empirical tests find out that seniors are more likely to be entrepreneurs, tax policies and social tolerance level matter to elderly entrepreneurship, and elderly entrepreneurship has positive impacts on regional economic growth, labor force size, and the amount of Social Security Fund surplus. This dissertation concludes with policy implications.

Keywords: entrepreneurship, self-employment, aging population, economic growth, spatial econometrics

JEL Classification: J18, J24, M13, O40, R11, A10, J14, J21, J26